COMMISSIONER OF INCOME TAX vs. JAIRAM EDUCATIONAL TRUST

TCA.503/2015 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 26.08.2022 CORAM

THE HONOURABLE MR. JUSTICE R. MAHADEVAN and THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.No. 503 of 2015 The Commissioner of Income Tax, Salem

.. Appellant Versus Jairam Educational Trust, 2, Deivanayagam Street, Shevapet, Salem

.. Respondent Tax Case Appeal filed under Section 260-A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal Madras “A” Bench, dated 21.11.2014 passed in ITA No.1765/Mds/2013 in respect of Assessment Year 2006-07. For Appellant : Mr. J.Narayanaswamy Standing counsel For Respondent : No appearance 1/4 https://www.mhc.tn.gov.in/judis TCA.503/2015 JUDGMENT (Judgment of the Court was delivered by R. MAHADEVAN, J.) This Tax Case Appeal has been filed by the appellant / revenue, questioning the correctness of the order dated 21.11.2014 passed by the Income Tax Appellate Tribunal Madras “A” Bench in ITA No.1765/Mds/2013 for the Assessment Year 2006-07. 2. On 17.11.2015, this tax case appeal was admitted by this Court on the following substantial questions of law; “1. Whether on the facts and circumstances of the case, the Tribunal was right in holding that corpus fund received by the Trust during the year cannot be treated as the income of the trust/institution for the purpose of determining 'aggregate annual receipts' in order to enjoy the benefit under Section 10(23C) (iiiad)?” 2. Whether on the facts and circumstances of the case, the Tribunal was right in holding that trust receipts and receipts of the college running under the trust are not to be clubbed together for purpose of determining the threshold of exemption under Rule 2BC of Income Tax Rules, 1962, read with Section 10(23C) (iiiad) of the Income Tax Act?”. 3. When the matter was taken up for consideration, the learned counsel for the appellant / Revenue brought to the notice of this court the Circular 2/4 https://www.mhc.tn.gov.in/judis TCA.503/2015 No.17/2019 dated 08.08.2019 issued by the Central Board Direct Taxes, wherein, it is stipulated that appeals shall not be filed/pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.1,00,00,000/- (Rupees One Crore). It is also submitted that the tax effect in this appeal is less than the threshold limit. 4. In the light of the aforesaid submissions made by the learned counsel for the appellant / Revenue, the present appeal, wherein, the tax effect is said to be less than the monetary limit imposed, is dismissed as withdrawn, keeping open the substantial questions of law for determination in an appropriate case. No costs. [R.M.D,J.] [M.S.Q., J.] 26.08.2022 msr

Index : Yes / No 3/4 https://www.mhc.tn.gov.in/judis TCA.503/2015 R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. msr To 1. The Assistant Commissioner of Income Tax, Circle-III, Salem-7. 2. The Commissioner of Income Tax (Appeals), Salem. 3. The Income Tax Appellate Tribunal Madras “A” Bench, Chennai, T.C.A.No. 503 of 2015 26.08.2022 4/4 https://www.mhc.tn.gov.in/judis